More options to be given to local SOEs in debt issuance
China is widening financing channels for local State-owned enterprises in order to ease the growing debt burden on local governments, sources familiar with the matter say.
The measures include allowing more enterprises to issue short-term debt in the domestic market and to raise capital via so-called "dim sum bonds" in overseas renminbi markets.
A company with a sound record - with a credit rating of AA+ or above - will be allowed to sell short-term debt that matures in 270 days or less, Bloomberg reported, citing unidentified sources with the National Association of Financial Market Institutional Investors, which regulates the sales.
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